Prepare the Journal Entries to Record the Following Transactions for Kilts

question 102

Essay

Prepare the journal entries to record the following transactions for Kilts & More,a company that produces hand-sewn kilts to Americans celebrating at Irish Festivals around the country.
a.Purchased $140,000 of material (3,500 yards)in cash.
b.Issued $120,000 of material (3,000 yards)into production.
c.Paid $45,000 cash in production labor costs.
d.Applied overhead at the predetermined rate of $12 per yard.
e.Incurred $42,000 of actual overhead costs,paid in cash.(Assume any difference between actual and applied overhead costs is adjusted directly to cost of goods sold. )
f.Completed 5,000 kilts.(Approximately $51,000 of inventory remains in process,so the cost of each kilt is approximately $______. )
g.Sold 4,500 kilts at $80.00 per unit.(All proceeds were collected in cash. )
h.Disposed of any over- or under-applied overhead cost.

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Definitions:

Unidentified Principal

A party in a transaction whose identity is not known to the other party, often in agent-principal relationships.

Disclosed Principal

A disclosed principal is a party whose identity is known by all involved parties at the time a transaction is entered into with an agent.

Undisclosed Principal

is a party in a contractual agreement whose existence and identity are not revealed to the third party at the time of contract formation, often in agency relationships.

Express Authorization

Directly stated or clearly indicated authority given for an action or procedure.